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Financial Impact Analytics - Methodology

Overview​

This section explains how AlphaGeo builds Financial Impact Analytics (FIA).

It covers the financial modelling framework, location-based climate inputs, asset-specific vulnerability adjustments, and the references behind the methodology.

What this section covers​

FIA translates climate signals into financial metrics that can plug into valuation, underwriting, and capital planning workflows.

The methodology is built in two layers:

  1. Location-based financial metrics — the baseline financial effect of climate at a given location
  2. Asset-specific vulnerability adjustment — the asset-type sensitivity layer that scales those baseline metrics for different asset classes

Together, these pages explain how AlphaGeo:

  • converts climate risk into valuation, insurance, OpEx, income, and CapEx metrics
  • applies asset-specific sensitivity coefficients across asset classes
  • documents the evidence behind those coefficients
  • grounds the methodology in published references and industry frameworks

Key pages​

Methodology: Location based financial metrics (1/2)​

Start here for the baseline FIA framework.

This page explains how AlphaGeo derives location-based financial metrics, including NPV loss, insurance premiums, utility demand, maintenance costs, downtime, and retrofit costs.

Methodology: Asset-Specific Vulnerability Framework (2/2)​

Use this page to understand the asset-level adjustment layer.

It explains the Asset Sensitivity Matrix, the multiplier logic behind each score, and how the same climate signal produces different financial outcomes across asset types.

Appendix: Sensitivity Coefficient Rationale per Asset Class​

Use this page for the supporting rationale behind the matrix.

It documents why each asset class receives specific sensitivity scores across maintenance, downtime, efficiency, retrofit costs, discount rates, insurance, insurability, and utility demand.

References​

Use this page for the source material behind the methodology.

It collects the references used to support the insurance, maintenance, utility demand, productivity, retrofit, and valuation components of FIA.

If you are new to FIA, read the pages in this order:

  1. Location based financial metrics (1/2)
  2. Asset-Specific Vulnerability Framework (2/2)
  3. Sensitivity Coefficient Rationale per Asset Class
  4. References

Related product page​

For the product overview, see Financial Impact Analytics.